Architect & Engineer's Professional Indemnity

This type of insurance is also named as Professional Indemnity
Insurance (PII) known to provide insurance of indemnity against faulty
design, negligence at supervision, errors & omissions (E&O) on
the part of architect or his company and due to which third parties
suffered loss or damage (to any person) or to the designed building
resulting material damage, holds professional consultants’ at his or
company’s legal liability under civil law to compensate victims. PII
protects architects & engineers professional advice and service
extending to either individuals and or companies and should such advice
or design prove wrong causing loss or damage to others will be
attributed to the profession negligence. The victims will be compensated
under the provision of PII. Insured’s defensive cost will be covered
against a negligent claim made by the victim, and damages awarded in
under a civil lawsuit.
Professional Indemnity Insurance covers alleged failure to
perform on the part of assured resulting in financial loss due to error
or omission in the service or design.

Benefits

The professional liability extends to indemnity bodily
injury, property damage, and personal injury claim. But various
professional services and products can give rise to legal claims without
causing any of the specific types of harm covered by such policies.
General claims under professional liability insurance attributed
directly to negligence errors and omission, violation of trust and good
faith resulting into inaccurate consultancy. The triggered or reported
claim may, however, directly cause financial losses.
Professional liability insurance policies are generally
worded on a claims-made basis, meaning that the policy only covers
claims made during the policy period. But all claims which may relate to
incidents occurring before the coverage was active may not be covered,
although some policies may have a retroactive date, such that claims
made during the policy period but which relate to an incident after the
retroactive date.

Extended reporting period for single project cover

The extended reporting extension under PII cover is for
those events that occur while the policy is in force but are reported to
the policy holder after the policy’s validity period exhaust for
design, supervision and execution of the project but remains in force
for the claims reporting for a decisive tenure mentioned on the face of
the policy. Initiating extended reporting period under single project
PII policy effectively converts the claims-made policy into an
occurrence policy.